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  • Buy-to-Let

    Stick or twist - conundrum about next steps

    I'm in a bit of a quandary and am seeking others thoughts.

    I have a property bought 3 yrs ago for £155k. Let out consistently for £750. Yielding a monthly profit of about £400 whilst having a £100k mortgage on the property.

    The property is now worth £240k+ and I am looking to remortgage for the maximum I can. I have found a 5yr deal that will lend £151k at 2.19% (60% LTV).

    Forgetting about S24 scenarios, my question to others is: should I sell this property as I can get a waaay better return applying the equity to higher yielding properties. Or am I in danger of flogging a decent property that is making really good capital growth?

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    I can't say what you should do, we all have different aims and priorities.

    I have an unencumbered inherited property that has been achieving 6% pa growth and less than 3% pa yield. I've decided to sell it and buy 2 higher yielding properties as income is a greater priority to me than balance sheet wealth. I also don't want a mortgage.

    Your priorities are likely to be different to mine, but decide what you want to achieve and work backwards from there.

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    Always tricky but when you sell and buy you incur legal fees and stamp duty vista, so you probably lose at least £10k for twisting.

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    No body can advise you what to do

    if I were to try and advise you I would need a meeting with you and learn a lot about you

    age occupation tax rate ect ect

    you can’t just put S24 to one side it’s important

    a forum for this is not the place because none of us know you in person

    best of luck

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    Learn Change and Adapt ?????

    All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.


    All depends upon your investment objectives and where the property is located.

    As I have said many time here property is due for a correction probably 20-30%. In theory you should therefore sell and wait for another buying opportunity. However as mentioned fees for selling and don't forget the capital gains tax.

    Remember from 2020 new rules come into play on the payment of tax ie have to pay quicker not tax year end as before. buying now is the top but you might find some cheap deal or wait a while. Sometimes if its not broken why try and fix it.

    The 5yr deal looks ok but remember when the refinance comes around rates could be higher so I would look for a 10yr deal with 5yr fix. The remaining 5yrs would be a margin over. libor but in 5yrs time any new mtg could well be a much higher margin.

    Also this way you have options and nothing to worry about for 10yrs.

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    Remember from 2020 new rules come into play on the payment of tax ie have to pay quicker not tax year end as before.

    Do you mean the scheme to make tax digital and paid quarterly? The government's last statement was that that would not apply to any taxes but VAT before 2020.  What happens after that is unclear.

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    After April 2020 any one selling a second home will have to pay any capital gains tax within 30days after completion instead of the 21 month period as now. I was just saying that should he sale at a later date ie after 5th April 2020 the new rules would apply.

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    As others have said, their are costs and taxes associated with selling a property.

    The grass may not be greener on the other side.

    In these uncertain times, I would stick with what you know.

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